Financial results for the fourth quarter of 2013 compared to the
fourth quarter of 2012: i

Revenue increased 27% to $65.2 million for the fourth quarter of 2013
from $51.4 million for the fourth quarter of 2012.

Professional management revenue increased 30% to $56.4 million for the
fourth quarter of 2013 from $43.2 million for the fourth quarter of
2012.

Net income was $9.3 million, or $0.17 per diluted share, for the
fourth quarter of 2013 compared to $6.5 million, or $0.13 per diluted
share, for the fourth quarter of 2012.

Non-GAAP Adjusted EBITDAi increased 33% to $23.3 million
for the fourth quarter of 2013 from $17.5 million for the fourth
quarter of 2012.

Non-GAAP Adjusted Net Incomei increased 45% to $11.9
million for the fourth quarter of 2013 from $8.2 million for the
fourth quarter of 2012.

Non-GAAP Adjusted Earnings Per Sharei increased 38% to
$0.22 for the fourth quarter of 2013 from $0.16 for the fourth quarter
of 2012.

Financial results for the full year 2013 compared to the full year
2012: i

Revenue increased 29% to $239.0 million in 2013 from $185.8 million in
2012.

Professional management revenue increased 34% to $202.8 million in
2013 from $150.9 million in 2012.

Net income was $30.0 million, or $0.57 per diluted share, in 2013
compared to $18.6 million, or $0.37 per diluted share, in 2012.

Non-GAAP Adjusted EBITDAi increased 42% to $79.3 million in
2013 from $55.8 million in 2012.

Non-GAAP Adjusted Net Incomei increased 56% to $39.0
million in 2013 from $25.0 million in 2012.

Non-GAAP Adjusted Earnings Per Sharei increased 50% to
$0.75 in 2013 from $0.50 in 2012.

Key operating metrics as of December 31, 2013:ii

Assets under contract (“AUC”) were $786 billion.

Assets under management (“AUM”) were $88.2 billion.

Members in Professional Management were over 753,000.

Asset enrollment rates for companies where services have been
available for 26 months or more averaged 13.2%iii and an
estimated 13.1% had AUC been marked-to-market at the end of the fourth
quarter 2013.

“Social Security will be the primary source of retirement income for
most baby boomers, and making poor claiming decisions can reduce
expected benefits by hundreds of thousands of dollars for a typical
married couple,” said Jeff Maggioncalda, chief executive officer of
Financial Engines. “We are excited to introduce our new Social Security
guidance to help American workers with all of the pieces of their
retirement puzzle – including 401(k) accounts, IRAs, pensions, and now
Social Security as well – so that they can make the most of what they
have in retirement.”

Review of Financial Results for the Fourth Quarter of 2013

Revenue increased 27% to $65.2 million for the fourth quarter of 2013
from $51.4 million for the fourth quarter of 2012. The increase in
revenue was driven primarily by the growth in professional management
revenue, which increased 30% to $56.4 million for the fourth quarter of
2013 from $43.2 million for the fourth quarter of 2012.

Costs and expenses increased 27% to $52.4 million for the fourth quarter
of 2013 from $41.2 million for the fourth quarter of 2012. This was due
primarily to an increase in fees paid to plan providers for connectivity
to plan and plan participant data, an increase in non-cash stock-based
compensation as well as an increase in wages, benefits, and employer
payroll taxes due to increased headcount and higher compensation.

As a percentage of revenue, cost of revenue (exclusive of amortization
of internal use software) was 38% for the fourth quarter of 2013
compared to 36% for the fourth quarter of 2012.

Income from operations was $12.9 million for the fourth quarter of 2013
compared to $10.1 million for the fourth quarter of 2012. As a
percentage of revenue, income from operations was constant at 20% for
both the fourth quarters of 2012 and 2013.

Net income was $9.3 million, or $0.17 per diluted share, for the fourth
quarter of 2013 compared to net income of $6.5 million, or $0.13 per
diluted share, for the fourth quarter of 2012.

On a non-GAAP basis, Adjusted Net Incomei was $11.9 million
and Adjusted Earnings Per Sharei were $0.22 for the fourth
quarter of 2013 compared to Adjusted Net Income of $8.2 million and
Adjusted Earnings Per Share of $0.16 for the fourth quarter of 2012.

“Our robust profitability and cash generation during the year gives us
the confidence to increase the regular quarterly dividend by 20% to
$0.06 per share,” said Ray Sims, chief financial officer of Financial
Engines. “The dividend increase reflects our continued commitment to
deliver value to our shareholders.”

Assets Under Contract and Assets Under Management

AUC was $786 billion as of December 31, 2013, an increase of 37% from
$575 billion as of December 31, 2012, due primarily to new employers
making our services available, market performance, and contributions.
AUC for plans in which the Income+ service has been made available was
$107 billion as of December 31, 2013, an increase of 224% from $33
billion as of December 31, 2012.

AUM increased by 38% year over year to $88.2 billion as of December 31,
2013, from $63.9 billion as of December 31, 2012. The increase in AUM
was driven primarily by market performance, net new enrollment into the
Professional Management service, and contributions.

In billions

Q1'13

Q2'13

Q3'13

Q4'13

AUM, Beginning of Period

$

63.9

$

70.8

$

74.3

$

82.0

New Enrollment(1)

3.1

4.7

4.8

4.4

Voluntary Cancellations(2)

(1.2

)

(1.2

)

(1.5

)

(1.6

)

Involuntary Cancellations(3)

(0.8

)

(1.0

)

(1.3

)

(1.8

)

Contributions(4)

1.3

1.3

1.4

1.4

Market Movement and Other(5)

4.5

(0.3

)

4.3

3.8

AUM, End of Period

$

70.8

$

74.3

$

82.0

$

88.2

(1)

The aggregate amount of assets under management, at the time of
enrollment, of new members who enrolled in our Professional
Management service within the period.

(2)

The aggregate amount of assets, at the time of cancellation, for
voluntary cancellations from the Professional Management service
within the period.

(3)

The aggregate amount of assets, as of the last available positive
account balance, for involuntary cancellations occurring when the
member’s 401(k) plan account balance has been reduced to zero or
when the cancellation of a plan sponsor contract for the
Professional Management service has become effective within the
period.

(4)

Employer and employee contributions are estimated each quarter
from annual contribution rates based on data received from plan
providers or plan sponsors. The data presented in the table above
differs from data provided in filings prior to September 30, 2012,
as the previously reported contributions data represented only
that subset of members for whom we received salary data.

For further information on the AUM data above, please refer to our
Form 10-K to be filed for the period ended December 31, 2013.

Aggregate Investment Style Exposure for Portfolios Under Management

As of December 31, 2013, the approximate aggregate investment style
exposure of the portfolios we managed was as follows:

Cash

3

%

Bonds

23

%

Domestic Equity

48

%

International Equity

26

%

Total

100

%

Quarterly Dividend

On February 11, 2014, Financial Engines’ Board of Directors declared a
regular quarterly cash dividend of $0.06 per share of the Company’s
common stock. The cash dividend will be paid on April 4, 2014 to
stockholders of record as of the close of business on March 21, 2014.

Outlook

Financial Engines’ growth strategy includes focusing on increasing
penetration within existing Professional Management plan sponsors,
enhancing and extending services to individuals entering and in
retirement, and expanding the number of plan sponsors.

Based on financial markets remaining at February 14, 2014 levels, the
Company estimates that its 2014 revenue will be in the range of $274
million to $279 million, and its 2014 non-GAAP Adjusted EBITDA will be
in the range of $92 million to $94 million.

Conference Call

The Company will host a conference call to discuss fourth quarter 2013
financial results today at 5:00 PM ET. Hosting the call will be Jeff
Maggioncalda, chief executive officer, and Ray Sims, chief financial
officer. The conference call can be accessed live over the phone by
dialing (877) 300-8521, or for international callers, (412) 317-6026. A
replay will be available beginning approximately one hour after the call
and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for
international callers. The conference ID is 10039453. The replay will
remain available until Tuesday, February 25, 2014, and an archived
replay will be available at http://ir.financialengines.com/
for 30 calendar days after the call.

About Non-GAAP Financial Measures

This press release and its attachments include certain non-GAAP
financial measures. The presentation of this financial information is
not intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with U.S.
generally accepted accounting principles (GAAP). These non-GAAP measures
include non-GAAP Adjusted Net Income, non-GAAP Adjusted Earnings Per
Share and non-GAAP Adjusted EBITDA. Non-GAAP Adjusted Net Income is
defined as net income before non-cash stock-based compensation expense,
net of tax, and certain other items such as the income tax benefit from
the release of valuation allowances, if applicable for the period.
Non-GAAP Adjusted Earnings Per Share is defined as non-GAAP Adjusted Net
Income divided by the weighted-average of dilutive common share
equivalents outstanding. Non-GAAP Adjusted EBITDA is defined as net
income before net interest income, income tax expense (benefit),
depreciation, amortization of internal use software, amortization of
direct response advertising, amortization of deferred commissions, and
non-cash stock-based compensation. Further information regarding the
non-GAAP financial measures included in this press release is contained
in the attachments.

To supplement the Company’s consolidated financial statements presented
on a GAAP basis, management believes that these non-GAAP measures
provide useful information about the Company’s core operating results
and thus are appropriate to enhance the overall understanding of the
Company’s past financial performance and its prospects for the future.
These adjustments to the Company’s GAAP results are made with the intent
of providing both management and investors a more complete understanding
of the Company’s underlying operational results, trends and performance.

About Financial Engines

Financial Engines, America’s largest defined contribution managed
account provider, is dedicated to making high-quality retirement help
available to everyone — regardless of how much money they have. We’re
proudly independent, which means we don’t sell products or earn
commissions based on our investment recommendations. The companies that
choose to work with us offer our services to their workers as a valuable
employee benefit.

Co-founded in 1996 by Nobel Prize-winning economist Bill Sharpe,
Financial Engines currently offers personalized advice for saving,
investing and living in retirement to millions of workers nationwide.
Our strong ties with employers give us a unique opportunity to form
direct relationships with their employees.

Some people love the challenge of investing. Others prefer to focus
their time elsewhere, but everyone needs to plan for retirement.
Whatever their interest level in investing, Financial Engines combines
cutting-edge technology and a personal, human touch to help all types of
investors reach their retirement goals. For more information, visit www.financialengines.com.

Forward-Looking Statements

This press release and its attachments contain forward-looking
statements that involve risks and uncertainties. These forward-looking
statements may be identified by terms such as “plan to,” “designed to,”
“will,” “can,” “expect,” “estimates,” “believes,” “intends,” “may,”
“continues,” “to be” or the negative of these terms, and similar
expressions intended to identify forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding Financial Engines’ expected financial performance and outlook,
benefits of its services, objectives and growth strategy, our commitment
to shareholder value, and the benefits of our non-GAAP financial
measures. These statements involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements to differ materially from those expressed or
implied by such forward-looking statements, and reported results should
not be considered as an indication of future performance. These risks
and uncertainties include, but are not limited to, our reliance on fees
earned on the value of assets we manage for a substantial portion of our
revenue, the impact of the financial markets on our revenue and
earnings, unanticipated delays in rollouts of our services, our ability
to increase enrollment, our ability to correctly identify and invest
appropriately in growth opportunities, our ability to introduce new
services and accurately estimate the impact of any future services on
our business, the risk that the anticipated benefits of our investments
in these services or in growth opportunities may not outweigh the
resources and costs associated with these investments or the liabilities
associated with the operation of these services, our relationships with
plan providers and plan sponsors, the fees we can charge for our
Professional Management service, our reliance on accurate and timely
data from plan providers and plan sponsors, system failures, errors or
unsatisfactory performance of our services, our reputation, our ability
to protect the confidentiality of plan provider, plan sponsor and plan
participant data and other privacy concerns, acquisition activity
involving plan providers or plan sponsors, our ability to compete, our
regulatory environment and risks associated with our fiduciary
obligations. More information regarding these and other risks,
uncertainties and factors is contained in the Company’s Form 10-K for
the year ended December 31, 2012, as filed with the SEC, and in other
reports filed by the Company with the SEC from time to time. You are
cautioned not to unduly rely on these forward-looking statements, which
speak only as of the date of this press release. All information in this
press release and its attachments is as of the date stated or February
20, 2014 and unless required by law, Financial Engines undertakes no
obligation to publicly revise any forward-looking statement to reflect
circumstances or events after the date of this press release or to
report the occurrence of unanticipated events.

i Please see “About Non-GAAP Financial Measures” for
definitions of the terms Adjusted Net Income, Adjusted Earnings Per
Share, and Adjusted EBITDA.

ii Operating metrics include both advised and subadvised
relationships.

iii Information regarding enrollment rates and the component
AUC can be found in the section entitled “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the
Company’s Securities and Exchange Commission (“SEC”) filings, including
the Form 10-K for the year ended December 31, 2012 and the Form 10-K to
be filed for the year ended December 31, 2013.

Financial Tables

FINANCIAL ENGINES, INC. AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

December 31,

2012

2013

Assets

(In thousands, except per share data)

Current assets:

Cash and cash equivalents

$

181,231

$

126,003

Short-term investments

-

120,027

Accounts receivable, net of allowances of $102 in 2012 and $124 in
2013